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Dr Dipankar

Dr Dipankar Dutta  |1681 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on May 26, 2025

Dr Dipankar Dutta is an associate professor in the computer science and engineering department at the University Institute of Technology, the University of Burdwan, West Bengal.
He has 27 years of experience and his interests include AI, data science, machine learning, pattern recognition, deep learning and evolutionary computation.
Aside from his responsibilities at the college, he also delivers lectures and conducts webinars.
Dr Dipankar has published 25 papers in international journals, written book chapters, attended conferences, served as a board observer for WBJEE (West Bengal Joint Entrance Examination) exams and as a counsellor for engineering college admissions in West Bengal. He helps students choose the right college and stream for undergraduate, masters and PhD programmes.
A senior member of the Institute of Electrical and Electronics Engineers (SMIEEE), he holds a bachelor's degree in engineering from the Jalpaiguri Government Engineering College and a an MTech degree in computer technology from Jadavpur University.
He completed his PhD in engineering from IIEST, Shibpur (formerly BE College).... more
Asked by Anonymous - May 22, 2025
Career

Which private college should I choose for Civil btech and government college except JU

Ans: If you want strong core Civil Engineering with GATE/PSU focus:
Prefer: IITs > NITs > IIEST Shibpur > State Govt Colleges

If you want private college with decent exposure & flexibility:
Prefer: BITS > Shiv Nadar > VIT > SRM > MIT-WPU
Career

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Ramalingam

Ramalingam Kalirajan  |9319 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Money
I became debt-free at 35. I cleared my education and car loan last month. I live with my parents who retired last year. Together they get a pension of 50,000 per month. They have invested in medical insurance and have an SIP of 5,000 per month. I don't plan to get married or have kids. I am earning 1.2 lakh per month. After my bills and expenses, I can save 40,000 every month. My goal is to make Rs 1 crore by 45, and I'm ready to invest aggressively. I've started SIPs in equity mutual funds but should I also look at NPS, PPF, or stocks? What is the most tax-efficient, high-growth path?
Ans: Debt-Free at 35 – A Strong Financial Foundation

Becoming debt-free by 35 is a great achievement.

Clearing loans early shows financial discipline.

Living with parents further reduces monthly expenses.

This allows for higher savings and investments.

You are starting from a strong and stable position.

That helps in building wealth faster and safer.

Monthly Cash Flow and Savings Potential

Your income is Rs 1.2 lakh per month.

After expenses, you save Rs 40,000 every month.

Parents’ pension adds Rs 50,000 to the household pool.

But we will focus only on your income and savings.

You can invest the entire Rs 40,000 every month.

Over 10 years, this can help you reach Rs 1 crore goal.

With aggressive investing, it is a realistic target.

Clearly Defined Goal – Rs 1 Crore by 45

You want to achieve Rs 1 crore in 10 years.

The goal is time-bound, realistic and measurable.

You are ready to invest aggressively for high growth.

That gives flexibility in selecting mutual fund categories.

Why Equity Mutual Funds Are a Smart Start

You have already started SIPs in equity mutual funds.

This is a wise and growth-focused decision.

Equity funds beat inflation and offer long-term wealth.

Diversification reduces risk compared to stocks.

Fund managers handle stock selection, rebalancing.

Ideal for busy professionals like you.

Stick to SIPs and invest for the long term.

Ideal Mutual Fund Categories for You

Focus more on diversified equity funds.

Consider large & mid-cap, flexi-cap, and aggressive hybrid.

Add some mid-cap and small-cap funds for faster growth.

You can increase SIP amount as income grows.

Rebalance portfolio every 12 months with a Certified Financial Planner.

Avoid Index Funds – Understand the Drawbacks

Index funds only copy the index.

They don’t try to beat the market.

No protection in falling markets.

No human intelligence during market volatility.

Actively managed funds offer better risk-adjusted returns.

Skilled fund managers make smart tactical decisions.

In a growing market like India, active funds outperform index funds.

Index funds work better in matured markets, not India.

Direct vs Regular Funds – Choose the Right Channel

Direct funds may look cheaper.

But there’s no advisor to guide you.

Wrong choices can harm your portfolio deeply.

Regular funds through a Certified Financial Planner offer value.

You get asset allocation, reviews, and proper fund selection.

Regular plans help avoid emotional mistakes like panic selling.

For wealth building, guidance is more valuable than low expense ratio.

Should You Invest in NPS?

NPS is a retirement-focused product.

Lock-in till age 60 limits liquidity.

Returns depend on equity allocation and market cycles.

60% of corpus can be withdrawn at 60.

40% must be used to buy annuity, which gives low return.

Not suitable if early financial freedom is your goal.

Tax benefits (under Sec 80CCD(1B)) are available, up to Rs 50,000.

But it comes with restricted flexibility.

NPS is not suitable if you prefer control and access.

Is PPF Worth Considering?

PPF offers guaranteed, tax-free return.

Current interest rate is around 7.1%.

Lock-in is 15 years.

Safe but not suitable for aggressive growth.

Ideal for conservative investors or senior citizens.

You are young and aggressive.

Avoid locking funds for 15 years at low return.

SIP in equity mutual funds is a better choice.

Should You Invest in Stocks?

Direct stocks can give high returns.

But they need research and constant tracking.

One mistake can wipe out gains.

No diversification, higher risk.

SIP in equity mutual funds is safer.

If you still want to try, invest not more than 5-10% of your portfolio.

Take guidance from a Certified Financial Planner or equity research expert.

How to Make Your Portfolio Aggressive and Balanced

Allocate 70% to equity mutual funds.

Divide this among flexi-cap, mid-cap, and small-cap funds.

20% in aggressive hybrid funds for equity-debt balance.

10% in international or thematic funds, if comfortable with risk.

Review every 6 or 12 months.

Avoid sector funds unless you understand them well.

Maintain discipline and avoid reacting to market noise.

Use SIP Step-Up Strategy

Increase SIP amount every year as income grows.

Even Rs 2,000–5,000 extra yearly makes a big difference.

Helps reach Rs 1 crore faster.

Keep a monthly SIP calendar.

Monitor and track SIPs regularly.

Avoid pausing SIPs in market corrections.

Tax Efficiency in Mutual Funds

For equity mutual funds:

STCG (short-term gains) taxed at 20% if sold within 1 year.

LTCG (above Rs 1.25 lakh annually) taxed at 12.5%.

For debt funds:

Taxed as per income slab, whether short or long term.

SIPs allow for better tax planning and staggered exits.

Hold equity funds for more than a year for better taxation.

Emergency Fund and Insurance Cover

Keep 6 months of expenses as emergency fund.

Since you live with parents, you can start with 3 months.

Gradually increase to 6 months.

Keep this in liquid mutual funds or sweep FD.

Ensure you have adequate health and personal accident insurance.

Term insurance may not be needed as you have no dependents.

Avoid ULIPs, Endowment Plans, and Traditional Policies

These give low returns and high lock-in.

If you hold any such plans, consider surrendering.

Reinvest that money in equity mutual funds.

Confirm surrender charges and lock-in period.

Take help from Certified Financial Planner before switching.

Other Smart Strategies to Consider

Automate SIPs and track goals monthly.

Set calendar reminders for yearly reviews.

Avoid taking loans for lifestyle upgrades.

Keep investments goal-linked – wealth, travel, early retirement.

Explore STP if you receive lump sum funds.

Avoid investing based on trends and social media hype.

Finally

You are in a strong position to grow wealth.

Rs 1 crore in 10 years is realistic.

Stick with equity mutual funds.

Don’t lock your money in PPF or NPS.

Avoid index and direct funds for now.

Work with a Certified Financial Planner regularly.

Track progress and stay invested for long term.

With discipline, Rs 1 crore is easily possible.

Wealth creation is a journey, not a race.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

Ramalingam

Ramalingam Kalirajan  |9319 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 03, 2025

Asked by Anonymous - Jul 03, 2025Hindi
Money
Sir, I am 42 years old, with 2 kids, one 8 year old and one 5 year old. I earn approximately around 2.5 lacs a month and my expenses are approximately 1 lac per month. I need to plan for both my kids higher education and my retirement. I have no liabilities. I have life cover of 2 crores for am paying 69k/year my self and 1.3 crore from company. Have health cover of 10 lacs each for myself, wife and both kids. I am doing 2 LIC each 5 Laks sum assured and totally paying 43k/year and 1 LIC 5 sum assured 5330/month . Having 400gms gold, doing 30k/month in gold purchase ,Currently paid 3.7 Lakhs paid in SSA and target to pay 1.5 lakhs/year 7 years to pay in SSA. 20 lacs in PPF. Please advise if can do any for retirement and kids educations?
Ans: You have created good savings, adequate insurance, and a manageable expense structure. Let’s now look at your situation deeply from a 360-degree view for:

Children’s higher education planning

Your retirement planning

Insurance review

Investment efficiency

Goal alignment

Policy re-evaluation

Each part below is built with your goals in mind and explained in a simple, practical manner.

Income and Expense Pattern

Monthly income is Rs. 2.5 lakhs.

Monthly expenses are Rs. 1 lakh.

That gives Rs. 1.5 lakh surplus every month.

You are saving 60% of your income.

This is an excellent savings ratio.

It gives strong scope for long-term wealth creation.

Insurance Evaluation

Life Insurance

You have Rs. 2 crore personal life cover.

You have Rs. 1.3 crore from your company.

Total Rs. 3.3 crore is a good number now.

You are paying Rs. 69,000 yearly for personal life cover.

Continue the term plan as it gives pure protection.

Company cover should not be fully relied upon.

It ends if you leave or lose your job.

LIC Policies

You hold 3 LIC policies.

Two policies of Rs. 5 lakh each.

One more LIC for Rs. 5 lakh sum assured.

You are paying Rs. 43,000 yearly and Rs. 5330 monthly.

These are low-return investment-cum-insurance policies.

Most of such plans give less than 5% return.

Insurance should not be mixed with investment.

You already have sufficient life cover.

These LIC policies do not serve investment or protection purpose efficiently.

Action Suggestion:

Please consider surrendering these LIC policies.

Reinvest the surrender value in mutual funds through an MFD with CFP credentials.

MFs can offer better returns over the long term.

Keep insurance and investments separate.

Health Insurance Assessment

You have Rs. 10 lakh health cover for each family member.

That is a total of Rs. 40 lakh for the family.

This is good and must be continued.

Ensure it is a family floater or individual as required.

If you don’t have super top-up, consider adding it later.

Premiums are rising with age.

Start early with top-up to reduce future costs.

Gold Investment Assessment

You already hold 400 grams of gold.

Also investing Rs. 30,000 monthly into gold.

This is on the higher side.

Gold should be a small part of portfolio.

Ideally 5% to 10% of overall assets.

Gold gives no interest, dividend, or bonus.

It only relies on price movement.

Long-term return is low compared to equity mutual funds.

Action Suggestion:

Reduce gold investment to Rs. 5,000–10,000 per month.

Use rest in child education and retirement corpus.

This will bring better wealth creation.

SSA and PPF Contributions

SSA Account

Excellent choice for your daughters.

SSA is tax-free and safe.

You are targeting Rs. 1.5 lakh yearly for 7 years.

This is disciplined and appreciated.

It will support girl child education and marriage expenses.

PPF Account

You have Rs. 20 lakh in PPF.

PPF is safe, tax-free and long-term.

But liquidity is very low.

Returns are limited to current interest rate only.

It should not be your primary retirement vehicle.

Consider this as a supporting retirement pillar.

Children’s Higher Education Planning

Elder child is 8 years now.

Younger one is 5 years.

You have around 10 and 13 years respectively.

This is the perfect time to act.

Education inflation is very high in India.

Cost doubles roughly every 7-8 years.

Action Plan:

Start mutual fund SIPs for both kids separately.

Use balanced advantage or large-cap active funds.

Choose funds with long-term proven track record.

Invest Rs. 25,000 each for both kids monthly.

You can increase this by 5-10% every year.

Do not withdraw this till the goal year comes.

Create a separate folio for each child’s goal.

Retirement Planning Evaluation

You are 42 years old.

Ideal retirement age is 58–60.

That gives you 16–18 years of investment time.

You are spending Rs. 1 lakh monthly.

At 6% inflation, this will be Rs. 2.5 lakhs monthly at retirement.

Your PPF is Rs. 20 lakh now.

This won’t be enough for 25+ years of post-retirement life.

Action Plan:

Start monthly SIP of Rs. 50,000 only for retirement.

Use actively managed multicap and flexicap funds.

Invest through a Certified Financial Planner via MFD route.

Regular plans offer handholding and behavioural guidance.

Direct plans miss out on professional advice.

Retirement goal needs adjustments and review every year.

Rebalance based on life stage and market condition.

Investment Style and Tax Awareness

Equity mutual funds give better returns in long run.

Do not go for direct mutual funds if you lack full understanding.

Invest through MFD with CFP guidance for better strategy.

Index funds are passive and track only the market.

They do not give downside protection in falling markets.

Actively managed funds offer better risk-adjusted returns.

Taxation is also a key factor to consider.

LTCG above Rs. 1.25 lakh is taxed at 12.5%.

STCG is taxed at 20%.

Debt fund gains taxed as per your slab.

Plan redemptions smartly with your advisor to reduce taxes.

Current Investment Misalignments

LIC policies are giving poor returns.

Gold allocation is too high.

SSA and PPF are low-yielding but safe.

No visible equity mutual fund allocation seen yet.

This needs realignment.

Insurance and investment are mixed wrongly.

No clear separation of goals seen.

You are missing equity growth in your portfolio.

Ideal Monthly Allocation Suggestion

Rs. 25,000 in SIP for elder kid

Rs. 25,000 in SIP for younger kid

Rs. 50,000 in SIP for retirement

Rs. 5,000 in gold savings

Rs. 12,500 for SSA account

Rs. 5,000 for PPF yearly can be continued

Remaining surplus can be in emergency fund, travel or home needs

Other Important Tips

Build an emergency fund of Rs. 6 lakhs minimum.

Keep it in liquid funds or sweep-in FD.

Review all goals every year with your advisor.

Rebalance investments every 12 months.

Do not stop SIPs during market falls.

Stay invested for long term always.

Delay short-term luxuries for long-term financial freedom.

Retirement is your biggest financial goal.

Don’t rely on EPF or pension from job alone.

Finally

You are financially disciplined already.
You have no loans and you save well.
Now it’s time to restructure and realign your plans.
Separate goals and give them the right asset class.
Avoid over-dependence on gold and PPF.
Replace LIC policies with better investments.
Start SIPs under professional guidance.
Stay focused, review often, and track each goal.

Your income can create strong wealth with correct action.
You just need direction and consistency from here onwards.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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